Nationwide cuts mortgage rates

The Nationwide have today announced a reduction in a number of their fixed rate mortgages, and a reduction in their two year remortgage trackers. The new rates will come into effect on the 12th September, and include a completely new two year fixed rate.

Of particular interest will be the five year fixed rate at 5.58% for borrowers wishing to borrow less than 60% of the value of their property. The scheme has a product fee of £1,999 and is available for both customers looking to purchase a home and customers who wish to remortgage away from their existing lender. The interest rate increases to 5.68% for those wishing to borrow up to 75% of the property value, and 6.13% for those wishing to borrow up to 90%. The new two year fixed rate mirrors the five year fixed rate in terms of the percentage of value which can be lent, and the interest rate charged. The main difference is the reduction in the product fee to £999 for the two year product and differences in the Early Repayment Charge.

Nationwide recognise that whilst such rates will be of interest to those who have average or larger than average mortgages, those with small mortgages are unduly penalised by high product fees. Therefore, for those purchasing a new property, the Nationwide offers two additional two year fixed rate mortgage options featuring either a £599 product fee, or no product fee at all. The interest rate payable on the former ranges from 5.88% to 6.43% depending on the percentage of the property value being borrowed, with the interest rate payable on the no fee product ranging from 6.28% to 6.83%. Customers looking to remortgage their existing property will enjoy a reduction of 0.2% off these schemes. The two year remortgage tracker product is now available from 5.53% for those happy to accept a £1,999 product fee, or from 5.83% for those who would prefer a reduced £599 product fee.

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